“On this basis, the termination was consistent with the Small Business Fair Dismissal Code; the application for an unfair dismissal remedy is dismissed.”

Employment lawyer Peter Vitale told SmartCompany all employees have a basic duty not to have personal interests that conflict with the interests of their employer.

“In this case, the fact that the employee was using time for which his employer paid him to work on his own business amounted to a clear conflict of interest and a breach of the duty of good faith,” Vitale says.

“The fact that the employee’s business was in competition with the employer amounts to a conflict of interest, even if he had been conducting it wholly in his own time.

“These breaches amount to serious misconduct for which the employer is entitled to terminate employment summarily.”

SmartCompany contacted Solarbright Country and Matthew Jones but did not receive a response prior to publication.

SmartCompany is the leading online publication in Australia for free news, information and resources catering to Australia's entrepreneurs, small and medium business owners and business managers.

Monday to Friday, SmartCompany.com.au publishes news, business trends and ideas from around the world, profiles and features, as well as all the latest business, tax, legal, marketing, politics and innovation developments occurring around the country.